Changan’s $31.8 Million Robotics Bet: Racing BYD and Xpeng in the Humanoid Robot Arena

Another Chinese automotive giant just placed its chips on the table. Changan Auto is diving headfirst into the robotics revolution, earmarking a cool $31.8 million to chase the same humanoid dream that has rivals BYD and Xpeng scrambling.

The New Assembly Line

Forget just welding car frames. The industry's playbook is being rewritten in real-time. This isn't about incremental upgrades; it's a fundamental pivot toward a future where factories are staffed by tireless, precise mechanical workers. The move signals a belief that the next frontier of manufacturing efficiency and cost reduction walks on two legs.

Following the Herd or Leading the Charge?

The strategic play is clear: don't get left behind. When your direct competitors make a billion-dollar bet on a technology, sitting out isn't an option. This $31.8 million injection is as much about keeping pace in a high-stakes PR race as it is about genuine R&D—after all, what's a few million to signal 'innovation' to shareholders and spook the competition?

The investment underscores a brutal truth in modern tech: standing still is the fastest way to become obsolete. Changan isn't just buying robots; it's buying a seat at the table in the next industrial revolution. Whether this capital fuels genuine breakthroughs or just gets lost in the venture capital ether—another line item for the finance team to quietly depreciate—remains the multi-million dollar question.

TLDRs;

• Changan invests $31.8 million, marking its entry into the automotive humanoid robotics market.
• The automaker plans prototypes and in-vehicle robots, aiming for 2026 public release.
• BYD, Xpeng, and Xiaomi accelerate humanoid robotics, raising industry competition and innovation.
• Component suppliers anticipate surging demand for robotics parts and automotive-grade AI solutions.

Chinese automaker Changan Automobile has announced a US$31.8 million investment in Changan Tianshu Intelligent Robotics Technology, acquiring a 50% stake.

This MOVE signals Changan’s ambitious entry into the rapidly expanding humanoid robot sector, following similar steps taken by rivals such as BYD, Xpeng, and Xiaomi.

The company revealed plans to release prototypes of its self-developed humanoid robots next year, with its first in-vehicle robot expected in the first quarter of 2026. The initiative demonstrates China’s growing focus on combining artificial intelligence with automotive manufacturing, bridging robotics and mobility solutions.

Industry Follows BYD and Xpeng

Changan’s move comes amid a wave of robotics investments by major Chinese automakers. Xpeng recently unveiled its second-generation Iron humanoid robot, which is slated for mass production in 2026.

Similarly, BYD and NIO have begun testing humanoid robots on factory floors, signaling a push to integrate robotics into production and service operations.

Xiaomi has also entered the race by hiring former Tesla engineer Zach Lu Zeyu to lead research and development for dexterous robotic hands. Together, these efforts illustrate a competitive landscape where automakers and tech firms are vying to develop practical and market-ready humanoid robots.

Prototype Ambitions and Technology Gaps

Changan introduced its “Xiao An” prototype, boasting 40 degrees of freedom and more than two hours of battery life. However, the company has not disclosed whether its actuators or AI models are internally developed, licensed, or acquired externally.

The firm has structured its robotics strategy under a “1+N+X” model, one Core platform, additional partner tracks, and exploratory projects. While details about partners remain unclear, the move reflects a broader industry trend of incremental development and experimentation in humanoid robotics.

Despite optimism, the National Development and Reform Commission of China has cautioned that the humanoid robotics sector remains immature, warning of potential market bubbles. This highlights both the opportunity and risks associated with the nascent industry.

Component Suppliers Poised for Growth

Changan’s and other automakers’ investments are creating near-term demand for specialized components. For instance, JAC Auto has issued a tender for full-size humanoids with five-finger hands, while FAW has capped a robotics service bid at 2.574 million RMB.

Companies such as Ubtech, Zhonghaida, and Zhongding are already benefiting from rising orders, including IMU sensors, precision gearboxes, and rubber parts for automotive robotics applications. Ubtech projects 1.1 billion RMB in 2025 orders and aims to produce roughly 1,000 humanoids this year.

Experts suggest component manufacturers focus on automotive-grade safety certification and edge AI middleware, essential for operating robots safely around humans and enabling real-time factory intelligence. The growing ecosystem indicates that robotics expansion is not only a technological effort but also a business opportunity for suppliers.

Looking Ahead

Changan’s $31.8 million robotics venture reflects China’s accelerating commitment to humanoid robotics within the automotive sector. With competitors advancing quickly and component demand rising, the next few years may see China become a global leader in the fusion of AI, robotics, and mobility.